- The USD/CAD has gone back and forth during trading on Thursday as we continue to see a lot of volatility in the markets.
- Ultimately, the US dollar and the Canadian dollar will have a lot to talk about on Friday, as we have seen a lot of momentum go back and forth in the oil market, but we also have the jobs number coming out of both countries on Friday, so it’s likely that we will see a lot of volatility during the day.
- Ultimately, this is a situation where we will see interest rate expectations and the central banks of both countries get a lot of play and traction.
The 1.350 level above should be resistance, while the 1.320 level underneath should be supported. As we are stuck between these 2 areas, I think it makes a lot of sense that we would see volatility regardless, and as a result, you need to be cautious with your position size. Given enough time, we will have to make a bigger decision and I think that we will probably see this market make a huge move beginning next week. A lot of this will come down to jobs, but you can also expect to see that oil could have a lot to do with what happens next.
Trying to Figure Out What the FED is Going to do Next
At this point, the US dollar seems to be on its back foot, but we will have to pay close attention to multiple markets because quite frankly this is a situation where this is all going to be about the greenback before it is said and done. However, this pair might be a little bit different than some of the others if the Canadian jobs number dictates that as being a reality. If we break down below the 1.32 level, we will threaten the 200-Day EMA, which is an indicator that a lot of longer-term traders will follow.
On the other hand, if we take out the 1.36 level to the upside, it means that the US dollar could reach the 1.40 level over the next several weeks. As we head into the end of the year, things will probably get quite volatile before they smooth out over the longer term. Ultimately, the world is trying to figure out what the Federal Reserve is going to do next.
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